ES daytrading and volume

Discussion in 'Index Futures' started by increasenow, Oct 2, 2007.

  1. How do you use volume and the 5 minute chart to daytrade the ES?...or please specify the minute chart you use...
  2. its really not an issue of volume it is an issue of supply moves and where paper needs certain levels. The last couple of days there have been a lot of buyside programs both in the mini dow and spu the down moves have been fast and untradable and then they recover with up moves that are slow and steady, meaning the paper is long...and/or squeezing shorts like pros. I shorted 1559 this morning...and got out when they could not take it past the 1554-52 area and I thought I was out of the SPU game...but they sucked me back in.
  3. Getting in ahead of volume is a good idea. So monitor pro-rata volume: PRV.

    Increasing volume => price trend will continue
    Decreasing volume => price trend will change

    Fast pace is low risk.
    Dry-up volume is high risk (what follows DU?).
    Price volatility (bar size) is proportional to volume (statistically).

    Why does price change? Supply is consumed. What is the indicator of this consumption? Volume.
  4. Volume on the up and down legs will clue you into the next move based on least resistance.

    Effort and result is what will help predict and identify weak and strong moments in the intraday market.
  5. but I've seen many times when the vol has increased but trend reveresed and etc...what about that?
  6. please explain more...thanks!
  7. nkhoi

    nkhoi Moderator

    that's blow up vol.